ETF Launch: Credit SPDR From State Street (ITR, STT)

State Street Corporation (NYSE: STT) is launching a new ETF to track the credit markets.  Its State Street Global Advisors (SSgA) investment management arm launched the SPDR Barclays Capital Intermediate Term Credit Bond ETF (NYSE: ITR).  This ETF will give access to investment grade credit bonds and was designed to track the price and yield performance of the Barclays Capital Intermediate Credit Index. The target index includes investment grade corporate and non-corporate credit bonds denominated in US Dollars.  These also have a maturity range of 1 year to 10 years.  As of December 31, 2008, the index included 2,512 issues, an average credit rating of “A” and an average maturity of 5.2 years; and its annual expense ratio is 0.15%.

Jon C. Ogg
February 11, 2009